The altcoin ballooned all year long due to the strength of the DeFi trend, which only recently began to wane itself. The momentum shifted toward Bitcoin, which has only crushed alts further.
Now, with Bitcoin potentially teetering thanks to the wave across crypto kicked off by this Ethereum whale, the entire market could come crashing down hard without the boat to cause the rising tide that Kennedy spoke of.
Instead, a drain-like effect could flush out 2020 returns, especially during a time when risk is the highest with an election coming to a conclusion within mere hours.
A sharp selloff, however, could prompt a retest of support turned resistance, which acted as a key level for Ethereum all throughout the bear market.
If the tides have turned, a retest of resistance turned support is likely | Source: ETHUSD on TradingView.com
A first rising wedge sent Ethereum down to test the red line as support, and on the next try, it made it through starting a bear trend. A second rising wedge topped out at the red line, while the third was able to push through it at the mid-point.
The bull trend has been back on since the top-ranked altcoin got back above the red line, but now it must come back down to confirm that the bearish days are over for the crypto market, and never again will Ethereum trade below $250 support.
Featured image from Deposit Photos, Charts from TradingView.com and CoinMetrics